I like best about reading is the opportunity to learn about something.. broaden my knowledge, most important of all, improve my thinking ability.
today's news from Yahoo..
World Officials to confront economic woes.
main talks about U.S strategies to deal with expected economic problems in the future. Their worries are awaken by the fact that On Friday, Wall Street suffered its worst single day loss in nearly two years with the Dow Jones industrial average plunging 191.24 points, its third straight triple-digit decline — something that hasn't happened since January 2003. This is in turned spurred by the fact that IBM wasn't performed so well for the first quarter. Also the soaring oil prices added to the factors.
Their highlighted strategies:
1. Increase oil production internally.
2. Improve trading.
3. Improve domestic growth.
4. Reduce debt burdens, means they are looking at possibilities of reducing loan. This is likely to spark the worries of poverty relies agencies such as Oxfam International.
5. Stop China from linking its currency;Yuan(RenMingBi) to U.S dollar. The yuan is undervalued by 40% and causes many manufacturers to outsource jobs to China from U.S.A
-->But what does it means of linking yuan to U.S dollar? could it be the fact that trading in China are done in U.S dollar than Yuan ? Thus you have a localized product quoted in U.S, means if you gets all the components from China, and plan to sell it at 10 Yuan, but instead selling it at 10 U.S Dollar. It is obviously cheaper than $10 isn't it. if it is for the case of U.S manufacturer buying components from China and then assemble at the U.S, similiar product might have to be sold at more than $10.
--> China should switch to a currency whose value is set by market forces. and China reply by saying the following:
Chinese officials continue to insist that they need to do more to prepare their financial system for an era of floating rather than fixed currency rates.